[November 07, 2018] |
|
Workiva Announces Third Quarter 2018 Financial Results
Workiva Inc. (NYSE: WK), a leader in data collaboration, reporting and
compliance solutions, today announced financial results for its third
quarter ended September 30, 2018.
"We posted strong results in the third quarter of 2018, highlighted by
an 18.7% increase in subscription and support revenue," said Marty
Vanderploeg, President and Chief Executive Officer of Workiva.
"Operating margin improved significantly in the quarter, and we
outperformed our guidance for revenue, operating loss and loss per
share."
"With our continual release of new Wdesk capabilities, international
market expansion, new use cases and a growing partner ecosystem, we are
optimistic about the role we will continue to play in automating and
modernizing a wide range of finance, accounting, risk, compliance and
management reporting processes," said Vanderploeg.
"Companies spend millions of dollars on ERP systems but still rely
heavily on manual processes to analyze and report performance data. The
limitations of these manual processes are driving the need for financial
transformation in the office of the CFO," said Vanderploeg. "The next
generation of Wdesk is designed to enable financial transformation by
providing end-to-end data assurance throughout the entire reporting
process."
Third Quarter 2018 Financial Highlights
-
Revenue: Total revenue for the third quarter of 2018 reached $60.9
million, an increase of 16.9% from $52.1 million in the third quarter
of 2017. Subscription and support revenue contributed $51.3 million,
up 18.7% versus the third quarter of 2017. Professional services
revenue was $9.6 million, an increase of 8.1% compared to the same
quarter in the prior year.
-
Gross Profit: GAAP gross profit for the third quarter of 2018
was $45.2 million compared with $36.4 million in the same quarter of
2017. GAAP gross margin was 74.2% versus 69.9% in the third quarter of
2017. Non-GAAP gross profit for the third quarter of 2018 was $45.5
million, an increase of 23.9% compared with the prior year's third
quarter, and non-GAAP gross margin was 74.8% compared to 70.6% in the
third quarter of 2017.
-
Loss from Operations: GAAP loss from operations for the third
quarter of 2018 was $10.7 million compared with a loss of $13.8
million in the prior year's third quarter. Non-GAAP loss from
operations was $3.8 million, compared with non-GAAP loss from
operations of $9.1 million in the third quarter of 2017. Adoption of
ASC 606 caused loss from operations to be $1.3 million less for the
third quarter of 2018 than what would have been recognized under the
legacy standard.
-
Net Loss: GAAP net loss for the third quarter of 2018 was $11.0
million compared with a net loss of $14.1 million for the prior year's
third quarter. GAAP net loss per basic and diluted share was $0.25
compared with a net loss per basic and diluted share of $0.34 in the
third quarter of 2017.
-
Non-GAAP net loss for the third quarter of 2018 was $4.0 million
compared with a net loss of $9.4 million in the prior year's third
quarter. Non-GAAP net loss per basic and diluted share was $0.09
compared with a net loss per basic and diluted share of $0.23 in the
third quarter of 2017.
Key Metrics
-
Customers: Workiva had 3,289 customers as of September 30,
2018, a net increase of 298 customers from September 30, 2017.
-
Revenue Retention Rate: As of September 30, 2018, Workiva's
revenue retention rate (excluding add-on revenue) was 95.9%, and the
revenue retention rate including add-on revenue was 104.7%. Add-on
revenue includes changes for existing customers in new solutions, new
seats and pricing. Revenue retention rates are calculated using the
legacy accounting standard ASC 605. Revenue retention rates will be
calculated using ASC 606 when comparable data becomes available.
-
Large Contracts: As of September 30, 2018, Workiva had 398
customers with an annual contract value (ACV) of more than $100,000,
up 31.8% from 302 customers at September 30, 2017. Workiva had 173
customers with an ACV of more than $150,000, up 32.1% from 131
customers in the third quarter of last year.
Financial Outlook
As of November 7, 2018, Workiva is providing guidance for its fourth
quarter and full year 2018 as follows:
Fourth Quarter 2018 Guidance:
-
Total revenue is expected to be in the range of $62.4 million to $62.8
million.
-
GAAP loss from operations is expected to be in the range of $11.5
million to $11.9 million.
-
Non-GAAP loss from operations is expected to be in the range of $4.3
million to $4.7 million.
-
GAAP net loss per basic and diluted share is expected to be in the
range of $0.26 to $0.27.
-
Non-GAAP net loss per basic and diluted share is expected to be in the
range of $0.10 to $0.11.
-
Net loss per basic and diluted share is based on 44.6 million
weighted-average shares outstanding.
Full Year 2018 Guidance:
-
Total revenue is expected to be in the range of $242.3 million to
$242.7 million.
-
GAAP loss from operations is expected to be in the range of $53.5
million to $53.9 million.
-
Non-GAAP loss from operations is expected to be in the range of $17.1
million to $17.5 million.
-
GAAP net loss per basic and diluted share is expected to be in the
range of $1.24 to $1.25.
-
Non-GAAP net loss per basic and diluted share is expected to be in the
range of $0.40 to $0.41.
-
Net loss per basic and diluted share is based on 43.7 million
weighted-average shares outstanding.
Quarterly Conference Call
Workiva will host a conference call today at 5:00 p.m. ET to review the
Company's financial results for the third quarter 2018, in addition to
discussing the Company's outlook for the fourth quarter and full year
2018. To access this call, dial 866-393-4306 (domestic) or 734-385-2616
(international). The conference ID is 4170638. A live webcast of the
conference call will be accessible in the "Investor Relations" section
of Workiva's website at www.workiva.com.
A replay of this conference call can also be accessed through November
14, 2018 at 855-859-2056 (domestic) or 404-537-3406 (international). The
replay pass code is 4170638. An archived webcast of this conference call
will also be available an hour after the completion of the call in the
"Investor Relations" section of the Company's website at www.workiva.com.
About Workiva Workiva delivers
Wdesk, a leading enterprise cloud platform for data collaboration,
reporting and compliance that is used by thousands of organizations
worldwide, including over 75 percent of the Fortune 500®.
Companies of all sizes, state and local governments and educational
institutions use Wdesk to help mitigate risk, improve productivity and
gain confidence in their data-driven decisions. For more information
about Workiva (NYSE:WK), please visit workiva.com.
Read the Workiva blog: www.workiva.com/blog Follow
Workiva on LinkedIn: www.linkedin.com/company/workiva Like
Workiva on Facebook: www.facebook.com/workiva Follow
Workiva on Twitter: www.twitter.com/workiva
Claim not confirmed by FORTUNE or Time Inc. FORTUNE 500® is a
registered trademark of Time Inc. and is used under license. FORTUNE and
Time Inc. are not affiliated with, and do not endorse products or
services of, Workiva Inc.
Non-GAAP Financial Measures
The non-GAAP adjustments referenced herein relate to the exclusion of
stock-based compensation and CEO separation expense. A reconciliation of
GAAP to non-GAAP historical financial measures has been provided in
Table I at the end of this press release. A reconciliation of GAAP to
non-GAAP guidance has been provided in Table II at the end of this press
release.
Workiva believes that the use of non-GAAP gross profit and gross margin,
non-GAAP loss from operations, non-GAAP net loss and non-GAAP net loss
per share is helpful to its investors. These measures, which are
referred to as non-GAAP financial measures, are not prepared in
accordance with generally accepted accounting principles in the United
States, or GAAP. Non-GAAP gross profit is calculated by excluding
stock-based compensation expense attributable to cost of revenues from
gross profit. Non-GAAP gross margin is the ratio calculated by dividing
non-GAAP gross profit by revenues. Non-GAAP loss from operations is
calculated by excluding stock-based compensation expense and CEO
separation expense from loss from operations. Non-GAAP net loss is
calculated by excluding stock-based compensation expense, net of tax,
and CEO separation expense from net loss. Non-GAAP net loss per share is
calculated by dividing non-GAAP net loss by the weighted- average shares
outstanding as presented in the calculation of GAAP net loss per share.
Because of varying available valuation methodologies, subjective
assumptions and the variety of equity instruments that can impact a
company's non-cash expenses, Workiva believes that providing non-GAAP
financial measures that exclude stock-based compensation expense allows
for more meaningful comparisons between its operating results from
period to period. Because of the non-recurring nature of CEO separation
expense, Workiva believes this expense is not representative of ongoing
operating costs. Workiva's management excludes CEO separation expense
when evaluating its ongoing performance and/or predicting its operating
trends and believes that its investors should have access to the same
set of tools that we use in analyzing results. Workiva's management uses
these non-GAAP financial measures as tools for financial and operational
decision making and for evaluating Workiva's own operating results over
different periods of time.
Non-GAAP financial measures may not provide information that is directly
comparable to that provided by other companies in Workiva's industry, as
other companies in the industry may calculate non-GAAP financial results
differently. In addition, there are limitations in using non-GAAP
financial measures because the non-GAAP financial measures are not
prepared in accordance with GAAP, may be different from non-GAAP
financial measures used by other companies and exclude expenses that may
have a material impact on Workiva's reported financial results. Further,
stock-based compensation expense has been and will continue to be for
the foreseeable future a significant recurring expense in Workiva's
business and an important part of the compensation provided to its
employees. The presentation of non-GAAP financial information is not
meant to be considered in isolation or as a substitute for the directly
comparable financial measures prepared in accordance with GAAP.
Investors should review the reconciliation of non-GAAP financial
measures to the comparable GAAP financial measures included below, and
not rely on any single financial measure to evaluate Workiva's business.
Safe Harbor Statement
Certain statements in this press release are "forward-looking
statements" within the meaning of Section 21E of the Securities Exchange
Act of 1934, as amended, and are subject to the safe harbor created
thereby. These statements relate to future events or the Company's
future financial performance and involve known and unknown risks,
uncertainties and other factors that may cause the actual results,
levels of activity, performance or achievements of the Company or its
industry to be materially different from those expressed or implied by
any forward-looking statements. In particular, statements about the
Company's expectations, beliefs, plans, objectives, assumptions, future
events or future performance contained in this press release are
forward-looking statements. In some cases, forward-looking statements
can be identified by terminology such as "may," "will," "could,"
"would," "should," "expect," "plan," "anticipate," "intend," "believe,"
"estimate," "predict," "potential," "outlook," "guidance" or the
negative of those terms or other comparable terminology.
Please see the Company's documents filed or to be filed with the
Securities and Exchange Commission, including the Company's annual
reports filed on Form 10-K and quarterly reports on Form 10-Q, and any
amendments thereto for a discussion of certain important risk factors
that relate to forward-looking statements contained in this report. The
Company has based these forward-looking statements on its current
expectations, assumptions, estimates and projections. While the Company
believes these expectations, assumptions, estimates and projections are
reasonable, such forward-looking statements are only predictions and
involve known and unknown risks and uncertainties, many of which are
beyond the Company's control. These and other important factors may
cause actual results, performance or achievements to differ materially
from those expressed or implied by these forward-looking statements. Any
forward-looking statements are made only as of the date hereof, and
unless otherwise required by applicable securities laws, the Company
disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
|
WORKIVA INC.
UNAUDITED CONSOLIDATED
STATEMENTS OF OPERATIONS (in thousands, except share
and per share amounts)
|
|
|
|
Three months ended September 30,
|
|
|
Nine months ended September 30,
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription and support
|
|
|
$
|
51,306
|
|
|
$
|
43,214
|
|
|
$
|
146,613
|
|
|
$
|
123,734
|
Professional services
|
|
|
9,567
|
|
|
8,854
|
|
|
33,296
|
|
|
29,629
|
Total revenue
|
|
|
60,873
|
|
|
52,068
|
|
|
179,909
|
|
|
153,363
|
Cost of revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription and support (1)
|
|
|
8,139
|
|
|
8,472
|
|
|
25,578
|
|
|
23,867
|
Professional services (1)
|
|
|
7,520
|
|
|
7,180
|
|
|
22,888
|
|
|
20,289
|
Total cost of revenue
|
|
|
15,659
|
|
|
15,652
|
|
|
48,466
|
|
|
44,156
|
Gross profit
|
|
|
45,214
|
|
|
36,416
|
|
|
131,443
|
|
|
109,207
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development (1)
|
|
|
19,984
|
|
|
17,527
|
|
|
60,829
|
|
|
49,302
|
Sales and marketing (1)
|
|
|
24,068
|
|
|
23,712
|
|
|
67,326
|
|
|
62,212
|
General and administrative (1)
|
|
|
11,864
|
|
|
8,959
|
|
|
45,286
|
|
|
27,323
|
Total operating expenses
|
|
|
55,916
|
|
|
50,198
|
|
|
173,441
|
|
|
138,837
|
Loss from operations
|
|
|
(10,702)
|
|
|
(13,782)
|
|
|
(41,998)
|
|
|
(29,630)
|
Interest expense
|
|
|
(448)
|
|
|
(464)
|
|
|
(1,347)
|
|
|
(1,394)
|
Other income, net
|
|
|
203
|
|
|
198
|
|
|
1,038
|
|
|
986
|
Loss before provision for income taxes
|
|
|
(10,947)
|
|
|
(14,048)
|
|
|
(42,307)
|
|
|
(30,038)
|
Provision for income taxes
|
|
|
17
|
|
|
25
|
|
|
43
|
|
|
67
|
Net loss
|
|
|
$
|
(10,964)
|
|
|
$
|
(14,073)
|
|
|
$
|
(42,350)
|
|
|
$
|
(30,105)
|
Net loss per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
|
|
|
$
|
(0.25)
|
|
|
$
|
(0.34)
|
|
|
$
|
(0.98)
|
|
|
$
|
(0.73)
|
Weighted-average common shares outstanding - basic and diluted
|
|
|
43,973,428
|
|
|
41,815,139
|
|
|
43,359,939
|
|
|
41,453,736
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes stock-based compensation expense as follows:
|
|
|
|
|
|
|
|
|
|
Three months ended September 30,
|
|
|
Nine months ended September 30,
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
Cost of revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription and support
|
|
|
$
|
161
|
|
|
$
|
204
|
|
|
$
|
560
|
|
|
$
|
522
|
Professional services
|
|
|
153
|
|
|
129
|
|
|
449
|
|
|
329
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
1,624
|
|
|
601
|
|
|
4,140
|
|
|
1,566
|
Sales and marketing
|
|
|
1,397
|
|
|
788
|
|
|
3,950
|
|
|
2,141
|
General and administrative
|
|
|
3,614
|
|
|
2,942
|
|
|
14,220
|
|
|
8,642
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WORKIVA INC.
CONSOLIDATED BALANCE SHEETS (in
thousands)
|
|
|
|
September 30, 2018
|
|
|
December 31, 2017
|
|
|
|
(unaudited)
|
|
|
|
Assets
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
71,843
|
|
|
$
|
60,333
|
Marketable securities
|
|
|
25,145
|
|
|
16,364
|
Accounts receivable, net
|
|
|
40,697
|
|
|
28,800
|
Deferred commissions
|
|
|
5,887
|
|
|
2,376
|
Other receivables
|
|
|
1,392
|
|
|
975
|
Prepaid expenses
|
|
|
5,727
|
|
|
6,444
|
Total current assets
|
|
|
150,691
|
|
|
115,292
|
Property and equipment, net
|
|
|
39,759
|
|
|
40,444
|
Deferred commissions, non-current
|
|
|
7,368
|
|
|
-
|
Intangible assets, net
|
|
|
1,216
|
|
|
1,118
|
Other assets
|
|
|
1,414
|
|
|
861
|
Total assets
|
|
|
$
|
200,448
|
|
|
$
|
157,715
|
Liabilities and Stockholders' Deficit
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
5,053
|
|
|
$
|
3,060
|
Accrued expenses and other current liabilities
|
|
|
34,146
|
|
|
20,212
|
Deferred revenue
|
|
|
128,435
|
|
|
104,684
|
Deferred government grant obligation
|
|
|
228
|
|
|
217
|
Current portion of capital lease and financing obligations
|
|
|
1,181
|
|
|
1,168
|
Total current liabilities
|
|
|
169,043
|
|
|
129,341
|
Deferred revenue, non-current
|
|
|
20,650
|
|
|
22,709
|
Deferred government grant obligation
|
|
|
81
|
|
|
278
|
Other long-term liabilities
|
|
|
5,428
|
|
|
3,896
|
Capital lease and financing obligations
|
|
|
17,533
|
|
|
18,425
|
Total liabilities
|
|
|
212,735
|
|
|
174,649
|
Stockholders' deficit
|
|
|
|
|
|
|
Common stock
|
|
|
44
|
|
|
42
|
Additional paid-in-capital
|
|
|
286,888
|
|
|
248,289
|
Accumulated deficit
|
|
|
(299,306)
|
|
|
(265,337)
|
Accumulated other comprehensive income
|
|
|
87
|
|
|
72
|
Total stockholders' deficit
|
|
|
(12,287)
|
|
|
(16,934)
|
Total liabilities and stockholders' deficit
|
|
|
$
|
200,448
|
|
|
$
|
157,715
|
|
|
|
|
|
|
|
|
|
|
WORKIVA INC.
UNAUDITED CONSOLIDATED STATEMENTS
OF CASH FLOWS (in thousands)
|
|
|
|
Three months ended September 30,
|
|
|
Nine months ended September 30,
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
$
|
(10,964)
|
|
|
$
|
(14,073)
|
|
|
$
|
(42,350)
|
|
|
$
|
(30,105)
|
Adjustments to reconcile net loss to net cash provided by operating
activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
1,133
|
|
|
854
|
|
|
2,881
|
|
|
2,612
|
Stock-based compensation expense
|
|
|
6,949
|
|
|
4,664
|
|
|
23,319
|
|
|
13,200
|
Provision for (recovery of) doubtful accounts
|
|
|
128
|
|
|
(691)
|
|
|
311
|
|
|
(259)
|
Realized gain on sale of available-for-sale securities, net
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
(Accretion) amortization of premiums and discounts on marketable
securities, net
|
|
|
(66)
|
|
|
24
|
|
|
(63)
|
|
|
83
|
Recognition of deferred government grant obligation
|
|
|
-
|
|
|
(207)
|
|
|
(208)
|
|
|
(943)
|
Deferred income tax
|
|
|
(4)
|
|
|
-
|
|
|
(4)
|
|
|
-
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
(1,691)
|
|
|
(757)
|
|
|
4,615
|
|
|
(1,299)
|
Deferred commissions
|
|
|
(1,939)
|
|
|
(179)
|
|
|
(5,608)
|
|
|
(330)
|
Other receivables
|
|
|
(591)
|
|
|
468
|
|
|
(416)
|
|
|
443
|
Prepaid expenses
|
|
|
2,501
|
|
|
5,123
|
|
|
712
|
|
|
3,097
|
Other assets
|
|
|
(389)
|
|
|
(87)
|
|
|
(557)
|
|
|
(74)
|
Accounts payable
|
|
|
616
|
|
|
669
|
|
|
1,999
|
|
|
1,008
|
Deferred revenue
|
|
|
8,630
|
|
|
5,904
|
|
|
15,032
|
|
|
24,398
|
Accrued expenses and other liabilities
|
|
|
3,269
|
|
|
3,474
|
|
|
7,156
|
|
|
(83)
|
Net cash provided by operating activities
|
|
|
7,582
|
|
|
5,186
|
|
|
6,819
|
|
|
11,748
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property and equipment
|
|
|
(523)
|
|
|
(987)
|
|
|
(742)
|
|
|
(1,134)
|
Purchase of marketable securities
|
|
|
(6,441)
|
|
|
(5,017)
|
|
|
(17,724)
|
|
|
(11,367)
|
Maturities of marketable securities
|
|
|
4,600
|
|
|
2,830
|
|
|
9,000
|
|
|
7,681
|
Purchase of intangible assets
|
|
|
(46)
|
|
|
(55)
|
|
|
(174)
|
|
|
(144)
|
Net cash used in investing activities
|
|
|
(2,410)
|
|
|
(3,229)
|
|
|
(9,640)
|
|
|
(4,964)
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from option exercises
|
|
|
7,534
|
|
|
1,154
|
|
|
13,927
|
|
|
6,669
|
Taxes paid related to net share settlements of stock-based
compensation awards
|
|
|
-
|
|
|
-
|
|
|
(1,861)
|
|
|
(936)
|
Proceeds from shares issued in connection with employee stock
purchase plan
|
|
|
1,846
|
|
|
-
|
|
|
3,216
|
|
|
-
|
Repayment of other long-term debt
|
|
|
-
|
|
|
(53)
|
|
|
-
|
|
|
(73)
|
Principal payments on capital lease and financing obligations
|
|
|
(287)
|
|
|
(348)
|
|
|
(879)
|
|
|
(1,135)
|
Proceeds from government grants
|
|
|
-
|
|
|
-
|
|
|
22
|
|
|
22
|
Payments of issuance costs on line of credit
|
|
|
-
|
|
|
(71)
|
|
|
-
|
|
|
(81)
|
Net cash provided by financing activities
|
|
|
9,093
|
|
|
682
|
|
|
14,425
|
|
|
4,466
|
Effect of foreign exchange rates on cash
|
|
|
83
|
|
|
93
|
|
|
(94)
|
|
|
187
|
Net increase in cash and cash equivalents
|
|
|
14,348
|
|
|
2,732
|
|
|
11,510
|
|
|
11,437
|
Cash and cash equivalents at beginning of period
|
|
|
57,495
|
|
|
59,986
|
|
|
60,333
|
|
|
51,281
|
Cash and cash equivalents at end of period
|
|
|
$
|
71,843
|
|
|
$
|
62,718
|
|
|
$
|
71,843
|
|
|
$
|
62,718
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE I WORKIVA INC. RECONCILIATION OF
NON-GAAP INFORMATION (in thousands, except share and per
share)
|
|
|
|
Three months ended September 30,
|
|
|
Nine months ended September 30,
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
Gross profit, subscription and support
|
|
|
$
|
43,167
|
|
|
$
|
34,742
|
|
|
$
|
121,035
|
|
|
$
|
99,867
|
Add back: Stock-based compensation
|
|
|
161
|
|
|
204
|
|
|
560
|
|
|
522
|
Gross profit, subscription and support, non-GAAP
|
|
|
$
|
43,328
|
|
|
$
|
34,946
|
|
|
$
|
121,595
|
|
|
$
|
100,389
|
As a percentage of subscription and support revenue, non-GAAP
|
|
|
84.5%
|
|
|
80.9%
|
|
|
82.9%
|
|
|
81.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit, professional services
|
|
|
$
|
2,047
|
|
|
$
|
1,674
|
|
|
$
|
10,408
|
|
|
$
|
9,340
|
Add back: Stock-based compensation
|
|
|
153
|
|
|
129
|
|
|
449
|
|
|
329
|
Gross profit, professional services, non-GAAP
|
|
|
$
|
2,200
|
|
|
$
|
1,803
|
|
|
$
|
10,857
|
|
|
$
|
9,669
|
As a percentage of professional services revenue, non-GAAP
|
|
|
23.0%
|
|
|
20.4%
|
|
|
32.6%
|
|
|
32.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
$
|
45,214
|
|
|
$
|
36,416
|
|
|
$
|
131,443
|
|
|
$
|
109,207
|
Add back: Stock-based compensation
|
|
|
314
|
|
|
333
|
|
|
1,009
|
|
|
851
|
Gross profit, non-GAAP
|
|
|
$
|
45,528
|
|
|
$
|
36,749
|
|
|
$
|
132,452
|
|
|
$
|
110,058
|
As percentage of revenue, non-GAAP
|
|
|
74.8%
|
|
|
70.6%
|
|
|
73.6%
|
|
|
71.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
$
|
19,984
|
|
|
$
|
17,527
|
|
|
$
|
60,829
|
|
|
$
|
49,302
|
Less: Stock-based compensation
|
|
|
1,624
|
|
|
601
|
|
|
4,140
|
|
|
1,566
|
Research and development, non-GAAP
|
|
|
$
|
18,360
|
|
|
$
|
16,926
|
|
|
$
|
56,689
|
|
|
$
|
47,736
|
As percentage of revenue, non-GAAP
|
|
|
30.2%
|
|
|
32.5%
|
|
|
31.5%
|
|
|
31.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
|
|
|
$
|
24,068
|
|
|
$
|
23,712
|
|
|
$
|
67,326
|
|
|
$
|
62,212
|
Less: Stock-based compensation
|
|
|
1,397
|
|
|
788
|
|
|
3,950
|
|
|
2,141
|
Sales and marketing, non-GAAP
|
|
|
$
|
22,671
|
|
|
$
|
22,924
|
|
|
$
|
63,376
|
|
|
$
|
60,071
|
As percentage of revenue, non-GAAP
|
|
|
37.2%
|
|
|
44.0%
|
|
|
35.2%
|
|
|
39.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative
|
|
|
$
|
11,864
|
|
|
$
|
8,959
|
|
|
$
|
45,286
|
|
|
$
|
27,323
|
Less: Stock-based compensation
|
|
|
3,614
|
|
|
2,942
|
|
|
10,599
|
|
|
8,642
|
Less: CEO separation expense(1)
|
|
|
-
|
|
|
-
|
|
|
9,527
|
|
|
-
|
General and administrative, non-GAAP
|
|
|
$
|
8,250
|
|
|
$
|
6,017
|
|
|
$
|
25,160
|
|
|
$
|
18,681
|
As percentage of revenue, non-GAAP
|
|
|
13.6%
|
|
|
11.6%
|
|
|
14.0%
|
|
|
12.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations
|
|
|
$
|
(10,702)
|
|
|
$
|
(13,782)
|
|
|
$
|
(41,998)
|
|
|
$
|
(29,630)
|
Add back: Stock-based compensation
|
|
|
6,949
|
|
|
4,664
|
|
|
19,698
|
|
|
13,200
|
Add back: CEO separation expense(1)
|
|
|
-
|
|
|
-
|
|
|
9,527
|
|
|
-
|
Loss from operations, non-GAAP
|
|
|
$
|
(3,753)
|
|
|
$
|
(9,118)
|
|
|
$
|
(12,773)
|
|
|
$
|
(16,430)
|
As percentage of revenue, non-GAAP
|
|
|
(6.2)%
|
|
|
(17.5)%
|
|
|
(7.1)%
|
|
|
(10.7)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
$
|
(10,964)
|
|
|
$
|
(14,073)
|
|
|
$
|
(42,350)
|
|
|
$
|
(30,105)
|
Add back: Stock-based compensation
|
|
|
6,949
|
|
|
4,664
|
|
|
19,698
|
|
|
13,200
|
Add back: CEO separation expense(1)
|
|
|
-
|
|
|
-
|
|
|
9,527
|
|
|
-
|
Net loss, non-GAAP
|
|
|
$
|
(4,015)
|
|
|
$
|
(9,409)
|
|
|
$
|
(13,125)
|
|
|
$
|
(16,905)
|
As percentage of revenue, non-GAAP
|
|
|
(6.6)%
|
|
|
(18.1)%
|
|
|
(7.3)%
|
|
|
(11.0)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per basic and diluted share:
|
|
|
$
|
(0.25)
|
|
|
$
|
(0.34)
|
|
|
$
|
(0.98)
|
|
|
$
|
(0.73)
|
Add back: Stock-based compensation
|
|
|
0.16
|
|
|
0.11
|
|
|
0.46
|
|
|
0.32
|
Add back: CEO separation expense(1)
|
|
|
-
|
|
|
-
|
|
|
0.22
|
|
|
-
|
Net loss per basic and diluted share, non-GAAP
|
|
|
$
|
(0.09)
|
|
|
$
|
(0.23)
|
|
|
$
|
(0.30)
|
|
|
$
|
(0.41)
|
Weighted-average common shares outstanding - basic and diluted,
non-GAAP
|
|
|
43,973,428
|
|
|
41,815,139
|
|
|
43,359,939
|
|
|
41,453,736
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) CEO separation expense in the nine months ended September 30, 2018
includes stock-based compensation of $3.6 million related to the
acceleration of eligible stock awards and separation payment expense of
$5.9 million pursuant to the former CEO's employment agreement. Included
as separation payment expense are cash payments made in excess of the
related bonus accrual recorded through the date of separation.
|
TABLE II WORKIVA INC. RECONCILIATION OF
NON-GAAP GUIDANCE (in thousands, except share and per
share data)
|
|
|
|
Three months ending December 31, 2018
|
|
|
Year ending December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations, GAAP range
|
|
|
$
|
(11,500)
|
|
-
|
|
$
|
(11,900)
|
|
|
$
|
(53,500)
|
|
-
|
|
$
|
(53,900)
|
Add back: Stock-based compensation
|
|
|
7,200
|
|
|
|
7,200
|
|
|
26,873
|
|
|
|
26,873
|
Add back: CEO separation expense(1)
|
|
|
-
|
|
|
|
-
|
|
|
9,527
|
|
|
|
9,527
|
Loss from operations, non-GAAP range
|
|
|
$
|
(4,300)
|
|
-
|
|
$
|
(4,700)
|
|
|
$
|
(17,100)
|
|
-
|
|
$
|
(17,500)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share, GAAP range
|
|
|
$
|
(0.26)
|
|
-
|
|
$
|
(0.27)
|
|
|
$
|
(1.24)
|
|
-
|
|
$
|
(1.25)
|
Add back: Stock-based compensation
|
|
|
0.16
|
|
|
|
0.16
|
|
|
0.62
|
|
|
|
0.62
|
Add back: CEO separation expense(1)
|
|
|
-
|
|
|
|
-
|
|
|
0.22
|
|
|
|
0.22
|
Net loss per share, non-GAAP range
|
|
|
$
|
(0.10)
|
|
-
|
|
$
|
(0.11)
|
|
|
$
|
(0.40)
|
|
-
|
|
$
|
(0.41)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding - basic and diluted
|
|
|
44,600,000
|
|
|
|
44,600,000
|
|
|
43,700,000
|
|
|
|
43,700,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) CEO separation expense in the year ending December 31, 2018 includes
stock-based compensation of $3.6 million related to the acceleration of
eligible stock awards and separation payments of $5.9 million pursuant
to the former CEO's employment agreement. Included as separation payment
expense are cash payments made in excess of the related bonus accrual
recorded through the date of separation.
View source version on businesswire.com: https://www.businesswire.com/news/home/20181107005773/en/
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